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Head And Shoulders Reversal

USDCAD TECHS
  • RES 4: 1.2964 High Dec 20 and the bull trigger
  • RES 3: 1.2924 High Dec 22
  • RES 2: 1.2814 High Jan 6 and a key near-term resistance
  • RES 1: 1.2726 20-day EMA
  • PRICE: 1.2558 @ 06:54 GMT Jan 12
  • SUP 1: 1.2493 Low Nov 16
  • SUP 2: 1.2448 76.4% retracement of the Oct - Dec rally
  • SUP 3: 1.2387 Low Nov 10
  • SUP 4: 1.2328 Low Oct 29

USDCAD traded sharply lower yesterday and has confirmed a clear break of support at 1.2621, the Dec 31 low. The break lower has strengthened the case for bears and highlights a head and shoulders reversal pattern on the daily chart. A continuation lower would open 1.2493 - the Nov 16, 2021 low and 1.2448, a Fibonacci retracement. Firm short-term resistance is at 1.2726, the 20-day EMA.

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